Another former executive at Polar Air Cargo was sentenced in federal court on Tuesday to six months in prison for his role in a scheme to defraud the company of $33 million dollars over more than a decade.
Carlton Llewellyn, who served as Polar’s vice president in charge of operations systems performance and quality,
pleaded guilty in January to one count of wire fraud. He also agreed to forfeit $348,000 and repay Polar nearly $306,000.
Judge Jesse Furman of the U.S. District Court for the Southern District of New York also ordered that Llewellyn be under supervised release for three years, with six months of home detention enforced by GPS monitoring.
Furman recommended that the Bureau of Prisons send Llewellyn to the medium-security correctional facility in Otisville, New York. Llewellyn is scheduled to surrender for prison on Jan. 15.
Polar Air Cargo is a joint venture between New York-based cargo airline Atlas Air and DHL Express. Atlas Air operates the aircraft. Most of the space is reserved for DHL, which determines the flight network. Atlas markets the rest of the capacity to freight forwarders. The airline has a fleet of eight large Boeing cargo jets, four 747-8s and four 777s.
Llewellyn and other company insiders were charged with accepting kickbacks from a small group of customers and vendors in exchange for favorable contracts, priority cargo loading, favorable shipping rates and enrollment in incentive programs.
The Polar executives also allegedly concealed ownership positions in certain service providers and received ownership distributions based, in large part, on revenue derived from contracts with Polar — contracts that had been secured and, often, renewed largely due to the recommendations of the executives.
In late August, Robert Schirmer, who was senior director of customer service for the Americas at Polar, received an 18-month prison sentence and 200 hours of community service for participating in the fraud conspiracy.
In May, Lars Winkelbauer, who was Polar’s chief operating officer until July 2021 and characterized in charging documents as the ringleader of the conspiracy, was sentenced to four years in federal prison. He was arrested in Thailand and extradited to the United States for trial.
Patrick Lau, who headed forwarder Cargo on Demand, was previously sentenced to 18 months in prison.
Click here for more FreightWaves/American Shipper articles by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
RECOMMENDED READING:
Western Global Airlines settles gender discrimination charge for $85K